Question & Answer

1.15     Structural cost drivers (a) With reference to Marino Designs in Self-study problem 2, demonstrate the meaning of the structural cost drivers: scope, technology and experience. (b) Classify Marino Designs’ likely strategy as low cost or product differentiation. Explain.

Use the information from IFRS17-10 but assume the shares were purchased to meet a non-trading regulatory requirement. Prepare Fairbanks’ journal entries to record (a) the purchase of the investment, (b) the dividends received, and (c) the fair value adjustment.

Why is an overvalued exchange rate likely to encourage the use of capital-intensive technology?

Grieg Landscaping began construction of a new plant on December 1  2014. On this date, the company purchased a parcel of land for $139,000 in cash. In addition, it paid $2,000 in surveying costs and $4,000 for a title insurance policy. An old dwelling on the premises was demolished at a cost of $3,000, with $1,000 being received from the sale of materials. Architectural plans were also formalized on December 1, 2014, when the architect was paid $30,000. The necessary building permits costing $3,000 were obtained from the city and paid for on December 1 as well. The excavation work began during the first week in December with payments made to the contractor as follows. Date of Payment Amount of Payment March 1 $240,000 May 1 330,000 July 1 60,000 The building was completed on July 1, 2015. To finance construction of this plant, Grieg borrowed $600,000 from the bank on December 1, 2014. Grieg had no other borrowings. The $600,000 was a 10-year loan bearing interest at 8%. Instructions Compute the balance in each of the following accounts at December 31, 2014, and December 31, 2015. (Round amounts to the nearest dollar.) (a) Land. (b) Buildings. (c) Interest Expense.

Balanced scorecard measures for financial perspective Following is financial information for last period about Curry House, a regional company with a number of fast-food stores:                                                                 Required Describe and calculate several measures that could be used for the financial perspective.

What is resistance-projection welding?

Using the facts in problem 34, if Chuck earns an additional $40,000 of taxable income, what is his marginal tax rate on this income?  What is his marginal rate if, instead, he had $40,000 of additional deductions?

Saurez Company, your client, manufactures paint. The company’s president, Maria Saurez, has decided to open a retail store to sell Saurez paint as well as wallpaper and other supplies that would be purchased from other suppliers. She has asked you for information about the conventional retail method of pricing inventories at the retail store. Instructions Prepare a report to the president explaining the retail method of pricing inventories. Your report should include the following points. (a) Description and accounting features of the method. (b) The conditions that may distort the results under the method. (c) A comparison of the advantages of using the retail method with those of using cost methods of inventory pricing. (d) The accounting theory underlying the treatment of net markdowns and net markups under the method.

Identify the five components that comprise pension expense. Briefly explain the nature of each component.

Consider the following letter and answer Shady’s question.

What is a conversion coating?

Why are both the price elasticity of demand and the price elasticity of supply likely to be greater in the long run?

What is a rivet?

1.    : What do you see as the primary advantage of using big data analytics—understanding the environment or influencing the environment? Why?

A true centrifugal casting operation is to be performed in a horizontal configuration to make cast iron pipe sections. The sections will have a length = 42.0 in, outside diameter = 8.0 in, and wall thickness = 0.50 in. If the rotational speed of the pipe = 500 rev/min, determine the G-factor. Is the operation likely to be successful?

1.    : Netflix is transparent with executive salaries; guides team leader behavior with sayings like What is your North Star and Make decisions with context not control; and urges teams to be highly aligned, loosely coupled. What do these viewpoints mean to you, and what type of corporate culture do you think they would promote?

{Research} Ralph owns a building that he is trying to lease.  Ralph is a calendar-year, cash method taxpayer and is trying to evaluate the tax consequences of three different lease arrangements.  Under lease 1, the building rents for $500 per month, payable on the first of the next month, and the tenant must make a $500 security deposit that is refunded at the end of the lease.  Under lease 2, the building rents for $5,500 per year, payable at the time the lease is signed, but no security deposit is required.  Under lease 3, the building rents for $500 per month, payable at the beginning of each month, and the tenant must pay a security deposit of $1,000 that is to be applied toward the rent for the last two months of the lease.  a.       What amounts are included in Ralph’s gross income this year if a tenant signs lease 1 on December 1 and makes timely payments under that lease?  b.       What amounts are included in Ralph’s gross income this year if the tenant signs lease 2 on December 31 and makes timely payments under that lease?   c.       What amounts are included in Ralph’s gross income this year if the tenant signs lease 3 on November 30 and makes timely payments under that lease?

Complete Table 13.3 up to 9 cars per minute, assuming that the journey time increases to 24 minutes for the eighth car and 35 minutes for the ninth car.

A laser triangulation system is used to determine the height of a steel block. The system has a photosensitive detector that is located 750.000 mm above the working surface and the laser is mounted at a 30.00° angle from the vertical. With no part on the worktable, the position of the laser reflection on the photo sensor is recorded. After a part is placed on the worktable, the laser reflection shifts 70.000 mm toward the laser. Determine the height of the object.

The balance sheet of Starsky Company at December 31, 2013, includes the following. Notes receivable $ 36,000 Accounts receivable 182,100 Less: Allowance for doubtful accounts 17,300 $200,800 Transactions in 2014 include the following. 1. Accounts receivable of $138,000 were collected including accounts of $60,000 on which 2% sales discounts were allowed. 2. $5,300 was received in payment of an account which was written off the books as worthless in 2013. 3. Customer accounts of $17,500 were written off during the year. 4. At year-end, Allowance for Doubtful Accounts was estimated to need a balance of $20,000. This estimate is based on an analysis of aged accounts receivable. Instructions Prepare all journal entries necessary to reflect the transactions above.

What is service cost, and what is the basis of its measurement?

What are the factors on which the selection of feed in a machining operation should be based?

Oxford Corporation began operations in 2014 and reported pretax financial income of $225,000 for the year. Oxford’s tax depreciation exceeded its book depreciation by $40,000. Oxford’s tax rate for 2014 and years thereafter is 30%. In its December 31, 2014, balance sheet, what amount of deferred tax liability should be reported?

Using the IS/MP framework illustrate how the financial accelerator affects the extent of the rise in output following a positive demand-side shock.

Distinguish between a debt security and an equity security.